Amendments have been made to the "Procedure of Calculating the Borrowers' Monthly Total Income under Mortgage Loans, Including Preferential Loans Issued by the Azerbaijan Mortgage Fund”.
The relevant decree was signed by Prime Minister Novruz Mammadov.
According to the amendments, in the decree of the Cabinet of Ministers dated Nov. 16, 2016, the words "Azerbaijan Mortgage Fund" are replaced with the words "Mortgage and Credit Guarantee Fund of Azerbaijan".
Incomes received from business activities are determined in accordance with the Tax Code.
According to the previous rules, the borrowers had to be engaged in entrepreneurial activity for at least two last years. In accordance with the amendments, this period is reduced to one year.
In addition, the previous rules stated that the amount of monthly total income should not exceed 20 percent (including an analysis of incomes and expenses) of the average monthly turnover in sectors of trade and production, while for the services sector, this figure should not exceed 40 percent.
From now on, the amount of monthly total income will not exceed 70 percent in the services sector.
Also, the average monthly income of a borrower is calculated as follows: the total income of the borrower for the last 12 months is divided by 12; if the income formation period was less than 12 months, but not less than six months, the average monthly income of the borrower is calculated by dividing the total income by the number of actual months.
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